Investors are now going for bargain hunting, said Anand James, chief market strategist Geojit Financial Services Ltd, adding “the sectoral direction is missing.” “We saw FMCG stocks gaining on hopes of a decent monsoon season,” he told BloombergQuint in a phone.
The rating agency downgraded its rating on the Anil Ambani-backed firm to CCC from B+, citing its belief that “some kind of default is a real possibility”.
This follows a slew of credit rating agencies like ICRA and CARE Ratings downgrading Reliance Communication’s rupee-denominated bonds and its loans to default.
Fitch On RCom
- Company’s short-term liquidity has deteriorated to a position where credit risk is very high
- RCom may struggle to refinance maturing short-term debt; company’s capital structure is unsustainable, operating cash flows not expected to improve
- RCom’s business model is “compromised” due to fierce price competition in Indian mobile market and the firm’s limited financial flexibility to invest due to high debt levels
Fitch says it has a negative outlook on India’s telecom market and expects credit profiles of the top-four telecom companies to come under pressure from tougher competition, larger capex requirements.
- Axis Bank has 33 lakh shares change hands in two block deals
- Reliance Communications has 12 lakh shares change hands in a block
Buyers and sellers were not immediately known.
(Source: Bloomberg)
Shares of SML Isuzu fell as much as 3.3 percent to Rs 1,225 as the company reported a 45.5 percent drop in its sales during the month of May.
Sales during the month declined to 1,052 units from 1,929 units during the corresponding quarter last year.
#BQSpotted by @iYashUpadhyaya | Zicom Electronic snaps 3-day losing streak.https://t.co/D8dpKcgpgy pic.twitter.com/zlcblaJ4YF
— BloombergQuint (@BloombergQuint) June 1, 2017
The truck maker dropped 2.6 percent after reported a 8 percent decline in overall sales last month. Trading volume was 1.8 times the 20-day average for this time of day.
The Chennai-based commercial vehicle manufacturer sold 9,071 units compared to 9,875 units during the corresponding period last year.
The Indian government is planning to sell a stake valued at $4.5 billion in state-refiner Hindustan Petroleum Corp. to the country’s biggest explorer this year as part of its plans to create a state-owned oil giant, according to people with knowledge of the matter told Bloomberg.
To read the full report, click Here
The resolution of bad loans of Indian banks a major challenge, Finance Minister Arun Jaitley said at an even in New Delhi.
FM Says
- Challenge of increasing private sector investment remains, Jaitley says
- Some slowdown was seen in economy even before demonetization
- India ready for rollout of Goods and Services Tax from July 1
- NITI Aayog has given suggestions on Air India; civil aviation ministry to explore on divestment or privatization of the national flag carrier
India’s market regulator issued observation letter on draft red herring prospectus filed by the SREI Infrastructure Finance-backed company.
Bharat Road Network had filed its draft red herring prospectus for an IPO on February 17, 2017. The proposed IPO can open with 12 months from date of issue of observation letter, founder SREI Infrastructure Finance said in its filing.
The company is looking to raise up to Rs 550 crore via the issue and will use the proceeds towards augmenting its capital base to meet future capital requirements.
The Nikkei India Manufacturing Purchasing Managers' Index, or PMI, dropped to a three-month low of 51.6 in May from 52.5 in April.
A reading above 50 indicates economic expansion, while one below 50 points toward contraction.
"The upturn in the Indian manufacturing sector took a step back in May, with softer demand causing slower expansions in output and the amount of new work received by firms," said Pollyanna De Lima, economist at IHS Markit, which compiles the survey.
"Echoing a more positive tone, the PMI dataset highlighted a stronger increase in businesses' input purchasing, while optimism reached a six-month peak," the economist said.
Source: Nikkei
The rupee firmed up by another 8 paise to 64.43 against the U.S. dollar, while the 10-year yield slid to lowest in more than two weeks.
Investors are hoping that a combination of record-low inflation and a surprise slowdown in India’s growth will prompt the central bank to put aside its hawkish bets at next week’s policy meeting.
Forex dealers said that besides sustained selling of the greenback by banks and exporters, the dollar's weakness against some currencies overseas backed up the rupee. Yesterday, the local currency had recovered by 15 paise to close at 64.51 on fresh selling of the American currency by banks and exporters.
With inputs from PTI
Shares of the Sunil Bharti Mittal backed firm gained as much as 3.5 percent, snapping a two-day losing streak.
The tower unit of the Bharti Airtel is sounding out banks about financing a potential offer for a majority stake in Indus Towers Ltd., India’s largest wireless tower operator, people with knowledge of the matter told Bloomberg.
To read the full report, click here
Shares climbed as much as 2.9 percent to their highest intraday level since at least 1991.
Oil and gas logistics company has agreed to sell a 19.7 percent stake in its wholly-owned subsidiary Hindustan Aegis LPG Company Ltd (HALPG) to an arm of Japanese trading company Itochu Corporation, a press statement said on Wednesday.
Itochu Petroleum Co (Singapore) Pte Ltd will invest Rs 250 crore in HALPG, which use the proceeds partly to develop a new LPG terminal at Haldia Port in West Bengal, the statement added.
The deal is yet to get a final nod from the Aegis Logistics board and subject to regulatory approvals.
Shares of the drug maker jump as much as 7.3 percent in early trade, the most intraday since November of last year. It was also the biggest gainer in the S&P BSE 500 index, NSE 500 index.
The pharmaceutical firm said it has entered into a pact with AstraZeneca AB, Sweden to acquire the 'Neksium' brand in India for Rs 75 crore to expand presence in gastrointestinal therapy segment.
The company is well placed to grow the Neksium brand further through its existing reach, coverage and equity in the gastrointestinal therapy area, Pfizer said in a statement.
#BQWatchList | From key bulk deals to monthly auto sales numbers, @AgamVakil gets you the 5 things to watch today.https://t.co/VsKzQILBaI pic.twitter.com/0Zmc7rpnUn
— BloombergQuint (@BloombergQuint) June 1, 2017
Market roundup for the month of May and what lies ahead. @jayeshkhilnani reportshttps://t.co/BvgdvI4GGP pic.twitter.com/KWLtsUcW3q
— BloombergQuint (@BloombergQuint) June 1, 2017
#BQMarketsNow | Buy Nifty with stop loss of 9540, says Prabhudas Lilladher’s Vaishali Parekh.https://t.co/VsKzQILBaI pic.twitter.com/zp3AbUt7DI
— BloombergQuint (@BloombergQuint) June 1, 2017
#BQMoney | Why bond yields may rise on Thursday, reports @DivyaDugarPatil.https://t.co/VsKzQILBaI pic.twitter.com/kEjvaDvsAR
— BloombergQuint (@BloombergQuint) June 1, 2017
For a complete list of stocks to watch, click here
- Finolex Cables cut to hold at Sharekhan, price target Rs 530
- Ipca Lab raised to hold at Emkay, price target Rs 480
- J Kumar Infraprojects cut to neutral at Phillip Secs
- Jagran Prakashan cut to accumulate at Arihant Capital
- KEC International raised to outperform at Centrum Wealth
- KNR Constructions raised to buy at Emkay, price target Rs 240
- NTPC cut to hold at ICICIdirect, price target Rs 176
- TTK Prestige cut to sell at Anand Rathi Securities
- United Spirits cut to neutral at HDFC Securities
- Wabco India cut to reduce at ICICI Securities, price target Rs 5,124
- Ahluwalia Contracts India cut to hold at Anand Rathi Securities
Data To Watch- 10:30am: Nikkei India Manufacturing PMI for May; prior 52.5
- Monthly auto sales
The market will react to a slew of macroeconomic data that was released after market hours on Wednesday.
National income data released on Wednesday shows that gross value added (GVA) growth slowed sharply in the fourth quarter to 5.6 percent, compared to 6.7 percent in the third quarter. Growth in the fourth quarter of fiscal 2017 is also much lower than the 8.7 percent growth reported in the fourth quarter of fiscal 2016.
India’s fiscal deficit narrowed in March to meet the government’s revised target of 3.5 percent in financial year 2016-17. (More Details HERE)
Also Read: Demonetisation Leaves An Imprint On GDP Growth In FY17
India economy trails forecasts as cash ban continues to weigh, here are some reactions:
- India FY18 GDP may rise 50-75 basis points over FY17 growth, says Arvind Subramanian
- BofA’s Mehta says RBI inflation view key after India GDP slows
- India’s Anant says demonetisation had an impact on GDP numbers
- RBI may ‘tone down its hawkishness’ after India GDP, says IDFC Asset
Trump still mulling whether to leave Paris accord.https://t.co/HLQx8Pn1h5 pic.twitter.com/9d4a9KAnkL
— BloombergQuint (@BloombergQuint) May 31, 2017
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